5-Star Stocks Poised to Pop: Dawson Geophysical

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oilfield services expert Dawson Geophysical (Nasdaq: DWSN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Dawson's business and see what CAPS investors are saying about the stock right now.

Dawson facts

Headquarters (founded)

Midland, Tex. (1952)

Market Cap

$194.5 million

Industry

Oil and Gas Equipment and Services

Trailing-12-Month Revenue

$313.8 million

Management

Founder/Chairman Decker Dawson

CEO Stephen Jumper

Return on Equity (average, last three years)

18.8%

Competitors

CGG Veritas (NYSE: CGV)

TGC Industries

CAPS Members Bullish on DWSN Also Bullish on

Apple (Nasdaq: AAPL)

Johnson & Johnson (NYSE: JNJ)

Middleby (Nasdaq: MIDD)

CAPS Members Bearish on DWSN Also Bearish on

First Solar (Nasdaq: FSLR)

Microsoft (Nasdaq: MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, some 98% of the 2,769 members who have rated Dawson believe the stock will outperform the S&P 500 going forward. These bulls include A6EIntruder and All-Star wuff3t, who is ranked in the top 10% of our community.

In late March, A6EIntruder nicely summed up the seismic opportunity:

Provides the data that big, dinosaur oil needs ... skills and expertise are contractable (so oil giants don't have to pay to keep it all in-house). Will only get more valuable in the future as top-quality analysis and interpretation of data becomes more valued.

In a pitch from last month, wuff3t reminds Fools that's it not too late to jump in:

Found this using the CAPS screener and looking for all my favorite measurements: low P/E and P/B ratio, decent Current Ratio and EPS growth. Oh, and low debt. Well, [Dawson] scores on all counts, and beats the industry averages as well. Even after its recent run-up (more or less doubled since March) I still see this as a very undervalued company and expect it to outperform significantly once the world resumes its normal "oil-frenzy" mode.

What do you think about Dawson, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dawson and Middleby are Motley Fool Hidden Gems picks. CGG Veritas is a Global Gains recommendation. Apple is a Stock Advisor selection, Johnson & Johnson is an Income Investor choice, and Microsoft has been singled out by Inside Value. The Fool owns shares of Middleby. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 10, 2009, at 12:34 PM, plange01 wrote:

    nile therapeutics (nltx) has nearly doubled this week.anyone know this stock?

  • Report this Comment On July 10, 2009, at 12:48 PM, pondee619 wrote:

    "On May 05, 2009, at 2:42 PM, TMFEZMagic wrote:

    Hi pondee619,

    Thanks for reading and the great idea.

    We're currently in the process of creating a CAPS player to track all of the "Poised" and "Plunge" articles.

    We should have the player set up in no time, so stay tuned!

    Brian"

    BRIAN:

    Under what name are your "Poised to" stocks listed in CAPS? thanks

    PS: could anyone at the Fool forward this to Brian? I don't think he looks at his articles, or the comments thereto, once he writes them.

    Thanks:

    I see that you are back from the holiday weekend. You have not responded to my many requests for this "new" players name. You said that you would be creating said player "in no time".

    Are you just lazy, inconsiderate or lying about setting up the CAPS player? Or, could it be, that you ran a trial of said player and found how poorly it is going, putting the lie to the premise of your series?

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